UAW, Chrysler reopen talks for new contract
Washington — A United Automobile Workers bargaining team began negotiating with Chrysler Corporation in a third round of lifesaving contract concessions for the ailing No. 3 automaker. Earlier, union president Douglas Frase said that with or without more federal loan guarantees, Chrysler will go out of business if interest rates dono decline soon.
"No matter what we do, it won't matter unless the auto industry changes drastically," he said. "The Chrysler Corporation cannot long survive in the present economic climate with the horrendous interest rates." Chrysler is trying to cut $1 billion in costs t o qualify for $400 million in federal loan guarantees.